Divorce case - property release or gift deed
I have got mutual consent divorce from my wife. Before filing divorce I had booked a flat (awaiting possession) in Maharashtra in which I and my ex wife are currently joint registered owner.
I have availed home loan from SBI bank with her name mentioned as co applicant in home loan agreement. I'm paying EMI and she is shown as house wife with no income.
She is ready to give up her right on this flat.
I approached bank first and they said I should pay balance home loan amount to bank and close account, only then I should go for release of her property right.
According to Bank it is illegal to do any property release document before closing the loan as property is mortgaged and bank possesses sale agreement document.
Lawyer has advised that bank concern is not a problem as we both can go for release deed as it is irrevocable and litigation free in future.
Additionally I should have a NOC letter signed by her which can be produce before bank at the time of loan closure.
Stamp duty payable is 5% of 50% market value of property
Another lawyer has advised I should go for gift deed (stamp duty 2% of 50% market value of property) and additionally have a NOC letter signed by her which can be produce before bank at the time of loan closure..
Please advice on whether I should execute gift or release deed(legally which is safe for divorce case), and will it be a concern from Bank if I proceed without loan closure.
Another question, if bank doesn't agree to remove her name as co-owner can there be any problem on loan closure day even though I have paid all EMI and cleared balance.